How SOPs work
Follow the journey of a typical award.
Accept your award
(if you're required to).
Wait for your award to vest.
Exercise your options before they expire and pay taxes.
The payout is now yours.
Receiving stock options (SOPs) from your company is a big deal—congratulations! SOPs let you buy company shares at a set price (the grant price), after a specified vesting (or waiting) period. If the stock price goes up, you could benefit financially.
Accepting your award and opening your account
To accept your award, go to Fidelity NetBenefits. If you're registering for the first time, you'll be asked to create a username and password and certify your account if you need to.
Tracking your award value
The value of your award is based on the difference between the price of your company's shares and the grant price of the award. Go to NetBenefits to see how much your award could be worth.
Receiving your payout
After a waiting period that your company sets, your award vests and the options become yours to exercise. Once vested, you can convert the options to shares by buying them at the grant price. Go to NetBenefits to find out when that happens. Remember that your stock options will expire, so be sure to exercise them in time.
Exercising stock options
When the market price of the shares is higher than your grant price, your options are "in the money." (If the market price is lower than the grant price, the options are "underwater" or "out of the money" and you can’t exercise them.) When you exercise, you only have to pay the grant price for the shares (plus applicable fees and taxes). You can then keep all the shares, sell them for cash, or choose a mixture of shares and cash.
Managing your payout
When you exercise your stock options, the shares or cash will pay out, after taxes, to your account. You'll also need this account to exercise your options. To sell your shares easily and link your bank account to access cash, go to NetBenefits.
Understanding your taxes
How much you'll pay in taxes depends on the type of stock option plan you have. For details, go to NetBenefits. Depending on your country's tax laws, you may have additional taxes when you sell your shares. Use Fidelity's tax-planning resources to learn more about taxes.
Make the most of your account
When you exercise your stock options, the shares or cash will deposit to your account.
With this account, you can manage your stock plans, transfer cash to your bank account, and sell your shares.
Your Stock Plan Resource Center
The Stock Plan Resource Center provides the help and education you need to understand how your equity compensation works, including taxes, and selling and managing shares.